5. Production Theory

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MIT OpenCourseWare

MIT OpenCourseWare

Күн бұрын

Пікірлер: 166
@tarafahey6217
@tarafahey6217 4 жыл бұрын
04:38 Variable & Fixed Inputs 05:37 Long Run vs Short Run 08:09 Short Run 09:35 - - > Marginal Product Utility 12:16 Long Run 13:31 - - > Isoquants 16:16 - - > Leontieff Graph 17:44 - - > Marginal Rate of Technical Substitution 24:40 Returns to scale 29:03 - - > Examples 31:45 Productivity 30:30 - - > Total Factor Productivity 43:58 Three Questions: 44:03 - - > IT Revolution & (lack of) Productivity Gains 45:09 - - > More Work or More Leisure? 46:21 - - > Top 1% vs Bottom 99% - Who gains?
@snowsharonfoo
@snowsharonfoo 4 жыл бұрын
Thank you so much for this!
@asiaejaz9304
@asiaejaz9304 3 жыл бұрын
?
@christophemoore6090
@christophemoore6090 3 жыл бұрын
Thanks for the table of context with the timestamp links
@sulaymanbojang2094
@sulaymanbojang2094 2 жыл бұрын
Merci beaucoup
@alibabausman9743
@alibabausman9743 2 жыл бұрын
I have never understand this course before until now. This lectures from MIT are of great help to us studying economics. We are not in the class but we do understand the lectures as equal as the class. Professor Gruber is a genius. I am an M.sc Student from Nigerian Defense Academy (NDA), Kaduna, Nigeria. Am looking forward to seeing you, Prof.
@anmolagrawal386
@anmolagrawal386 Жыл бұрын
00:00 Introduction to producer theory and maximizing profits through minimizing costs. 06:21 Short run production function: labor is variable, capital is fixed. 11:35 Understanding diminishing marginal product of labor and long run production 17:13 Understanding the Marginal Rate of Technical Substitution 22:51 Returns to scale in production 27:50 Returns to scale must decrease eventually 32:23 Productivity and innovation drive economic growth 37:30 Productivity innovation is key to determining a country's standard of living. 42:41 Productivity growth has slowed down since 1973, raising questions about its measurement, utilization, and distribution. 47:07 Productivity gains have only benefited the top 20% of income distribution.
@andile5945
@andile5945 3 жыл бұрын
Instructors with an empirical background have a wonderful way of distilling a subject. This is awesome stuff. Forever grateful for the introductory content.
@lesliethompson1076
@lesliethompson1076 3 жыл бұрын
Production Theory test for my Public Policy Grad Micro class on Monday. THANK YOU MIT for your help!!!!!!!!! Been using your lectures all semester to supplement my learning.
@akolonomics
@akolonomics 3 жыл бұрын
Thank you so much professor. I have clearly understood the topic of production theory. Hope to pass my MA exam with flying colours at the University of Nairobi, Kenya.
@someonethirsty1957
@someonethirsty1957 Жыл бұрын
Did you pass with flying colors?
@akolonomics
@akolonomics Жыл бұрын
@@someonethirsty1957 Thank you so much for your follow-up question 🙏. I passed with flying colours and graduated yesterday, December 15, 2023, with Master of Economics at the University of Nairobi. Thank you so much once again 💓.
@someonethirsty1957
@someonethirsty1957 Жыл бұрын
@@akolonomics You must be very proud. This new accomplishment sounds like the next big step for you!
@arinzechukwubuike
@arinzechukwubuike 4 жыл бұрын
This course in now getting interesting. I must complete it.
@vaibhavkeshari9620
@vaibhavkeshari9620 3 жыл бұрын
It was interesting since day 1. Clearly you weren't paying attention.
@joaogoncalves8858
@joaogoncalves8858 2 жыл бұрын
@@vaibhavkeshari9620 Seems like you were the one not paying attention. You must have missed out on the concept of ordinal utility.
@lucianomoraes4194
@lucianomoraes4194 11 ай бұрын
Thank MIT for providing this kind of lecture and free-for-all community. This is a real democratization for everyone.
@londonlife4369
@londonlife4369 Жыл бұрын
thank you for allowing all to watch these lectures which are really really helpful and the lecturers are also very good even after paying thousands of pounds to university I have not learnt about these
@DenBorchev
@DenBorchev Жыл бұрын
On 44:15 "We don't really know [why productivity growth slowed past 2005]": - By December 2005, Facebook had 6 million users. - Twitter created in early 2006 - KZbin founded in February 2005 Th internet has not been the same ever since.
@ryanhachey9525
@ryanhachey9525 4 жыл бұрын
“Let’s think of two perfectly substitutable inputs. A Harvard graduate and a beanie baby.”
@riaa12
@riaa12 Жыл бұрын
the class audio was muted @chaitanyasharma3921
@redrubydasleeze17
@redrubydasleeze17 11 ай бұрын
What does beanie baby mean I didn't get the joke can anyone explain 😭
@azarakhshsawmen127
@azarakhshsawmen127 6 ай бұрын
@@redrubydasleeze17 Google was invented in 1998 People in 1997:
@projectnasty
@projectnasty 4 ай бұрын
@chaitanyasharma3921 if i went to MIT I would not ever even think about joking or losing my focus laughing at jokes either.
@hanyeoreum
@hanyeoreum 4 жыл бұрын
R.I.P for the chalks from his classes...8:19
@nox5282
@nox5282 2 жыл бұрын
I propose a thesis that return of scale can be strictly increasing in areas of production that does not produce a physical product but a service that is not limited to physical resources or even manual labour.
@oladeleluqmon4653
@oladeleluqmon4653 2 жыл бұрын
These lectures are priceless. God bless MIT.
@muhammadsiddiqui2244
@muhammadsiddiqui2244 4 жыл бұрын
8:19 I have indestructible chalks but they also don't write.
@joshvinet9250
@joshvinet9250 4 жыл бұрын
The hero I needed, Godspeed sir.
@eduardoabreu1626
@eduardoabreu1626 3 жыл бұрын
Super helpful and complete class. Grateful for the content. Keep improving!
@joshuaaruokhai5401
@joshuaaruokhai5401 Жыл бұрын
i love Prof. Gruber's teachings, so concise and informative
@robbyosborne9708
@robbyosborne9708 Жыл бұрын
He is such a wise man.
@VincePadilla-z7f
@VincePadilla-z7f 6 ай бұрын
Master OOgway
@sleepycritical6950
@sleepycritical6950 3 жыл бұрын
Did he just say "how much shit we have" at around the 40 min mark? Gotta be the coolest Prof I've ever seen.
@Alemiha
@Alemiha 3 жыл бұрын
He did indeed, that and the porn part made me chuckle.
@winstonacousticstudio445
@winstonacousticstudio445 2 жыл бұрын
@@Alemiha i can't seem to spot the porn part
@andreasantoniou6017
@andreasantoniou6017 2 жыл бұрын
@@winstonacousticstudio445 44:25
@DataSet
@DataSet 2 жыл бұрын
32:50 Land can be variable actually. Artificial Islands have already been created for many years. China for instance, has developed over 3200 acres of artificial land.
@aarondesilva9578
@aarondesilva9578 2 жыл бұрын
Land would be more of a long run variable than short run
@gtawalkthrough336
@gtawalkthrough336 2 жыл бұрын
Isn't that land defined as 'natural resources' used in production? From this logic, artificial island which is man-made is not land.
@righteousness8606
@righteousness8606 3 жыл бұрын
46:00 we can also say that we spend alot of our productivity on wars...which is why our infrastructure is degrading.
@fernandocarmo1570
@fernandocarmo1570 2 жыл бұрын
Or better, in bellic study and production
@arjunmahajan4049
@arjunmahajan4049 Жыл бұрын
Goal of producer to maximise profit , make production effectiently as possible Profit = Revenue-Cost
@Khanzadi-nd5wv
@Khanzadi-nd5wv Жыл бұрын
I am from Pakistan And your teaching ability is just marvelous 👌🏼🤗...Thanks for being helping me to understand microeconomics 🙌🏼
@raghunathnandi8203
@raghunathnandi8203 3 жыл бұрын
I love you sir u are a perfect professor , i even not a student of economics understand clearly
@adityagupta1583
@adityagupta1583 3 жыл бұрын
everytime he says OK..... have a deep breath
@auliandabahri2094
@auliandabahri2094 4 жыл бұрын
I was studying economy but here in English version..nice post..
@kych2008
@kych2008 3 жыл бұрын
The force is with you .
@an-sofiedebruycker8300
@an-sofiedebruycker8300 2 жыл бұрын
You just know he makes that harvard joke every year
@johnfoo8400
@johnfoo8400 3 жыл бұрын
Am I the only one who found out he said internet only helped us improve productivity at 44:28?
@richdevil5816
@richdevil5816 5 ай бұрын
This Professor is incredible!!Loving getting taught by him!!
@datarecords6248
@datarecords6248 6 ай бұрын
44:18 ai is taking over now... crazy how far things changed since 2018
@uditabhattacharya2824
@uditabhattacharya2824 Жыл бұрын
long run production and returns to scale, see the bookmarks very very important
@korkink
@korkink Ай бұрын
If the chalks were indestructible, will they be able to write?
@kray8932
@kray8932 27 күн бұрын
Good question But the answer is no Because the more the chalk is destroyed the more we write
@thomasjunior7589
@thomasjunior7589 Жыл бұрын
This recording really helpful...watching from Solomon Islands in the Pacific
@davisoaresalves5179
@davisoaresalves5179 Жыл бұрын
Krugman said: productivity isn't not everything, but in the long run it is.
@Jamesbond-d007
@Jamesbond-d007 8 ай бұрын
Paid money to local university and here we take lectures to understand economy 😂😂
@qasemtv1737
@qasemtv1737 Жыл бұрын
I can't believe I'm attending an MIT Economics class from Africa😅😅!!
@SharonGora-w5q
@SharonGora-w5q Жыл бұрын
Very precise and informative thanks sir BTW watching this from Zimbabwe
@Genzi_2
@Genzi_2 Ай бұрын
Let's assume a hypothetical condition where we can change capital, but we cannot change labor, so capital is variable and labor is fixed ?
@Tibs14
@Tibs14 11 ай бұрын
Bro is saving my semester let him cook 🙏🙏♨️♨️♨️♨️ give this man a raise
@shashwatkunder1658
@shashwatkunder1658 4 жыл бұрын
He won't be able to write if he used indestructible chalks
@sleepycritical6950
@sleepycritical6950 3 жыл бұрын
Probably a marker and whiteboard would be a good substitute
@aaaazero
@aaaazero 2 жыл бұрын
Not every one fully utilize features built in windows. It led to productivity remained. Cause behavior and skill not changed much
@nomad8473
@nomad8473 2 жыл бұрын
Additional production is only none returm with wage capital, not salary capital.
@ashokekumarsen7919
@ashokekumarsen7919 2 жыл бұрын
Locus of all combinations of L n K which give you the same level of output is an isoquant!
@md.kamalhossain4850
@md.kamalhossain4850 2 жыл бұрын
Would you prescribe a Microeconomics book which will be relevant with this excellent lecture?
@mathiashelseth8488
@mathiashelseth8488 3 жыл бұрын
This is amazing holy crap
@compassft
@compassft 2 жыл бұрын
When speaking about the second extreme case, i.e. non substitutable inputs, prof. Gruber states real examples are those where you need both products of a pair, such as, he says is the typical example, shoes...but to me those look like more as outputs, not inputs, i.e shoes are products...instead I found more convincing the example by the girl who says computer and programmer...has anyone an idea on that?
@ishika775
@ishika775 Жыл бұрын
Yea . You are right . The example of right shoe and left shoe is generally taken in case of non substitutable indifference curves and not in case of isoquants. The example given by the girl is apt
@adahsamuel356
@adahsamuel356 6 ай бұрын
A great lecture delivered, thanks sir.
@ZacchaeusPaul
@ZacchaeusPaul Жыл бұрын
That's nice presentation however I need the presentation on long run and short run production ie economies of scale,deeconomies of scale
@kirangwagodfrey3834
@kirangwagodfrey3834 3 жыл бұрын
Production principles are ever in close cooperation with demand principles. The producer to produce have to follow carefully market demand.
@yihuniemulaw4125
@yihuniemulaw4125 2 жыл бұрын
thank you instructor!
@aaaazero
@aaaazero 2 жыл бұрын
Thanks instructor and MIT
@hongyo122
@hongyo122 3 жыл бұрын
수요는 넘 어려웠는데 그걸 하고나니 공급은 좀 더 수월하니 재밌다.. 아직까지는 ...
@happymeal828
@happymeal828 Жыл бұрын
such a good explanation, thank you so much. this is very helpful
@defyingfinance9882
@defyingfinance9882 Жыл бұрын
at 44:00 we know why. Regulation.
@rainfordkingsley187
@rainfordkingsley187 8 ай бұрын
Thankyou prof,it was very helpful clear and understandable
@frenchpapi
@frenchpapi 3 жыл бұрын
Thanks for the lecture it has been so Good...
@zeweichu550
@zeweichu550 Жыл бұрын
Love this professor, super energetic : )
@MidnightBabySlick
@MidnightBabySlick 3 жыл бұрын
That was excellent thank you so much
@peterg617
@peterg617 4 жыл бұрын
Someone needs to invent me some more indestructible chalk 8:18
@rainfordkingsley187
@rainfordkingsley187 8 ай бұрын
Stupid
@hzngura5607
@hzngura5607 2 жыл бұрын
Very impressed your lecture sir...
@mcdev6868
@mcdev6868 Жыл бұрын
I love these courses I learn so much! Even more fascinating is the fact that he did not yet seem to be canceled by being fat phobic lol.
@cmalheiros1
@cmalheiros1 Ай бұрын
Na minha humilde opinião,,,,será mesmo q tudo isso é necessário para explicar como funciona a produção?
@marcusatiliusregulus
@marcusatiliusregulus 2 жыл бұрын
Europe... is not more rundown then america?? Also many precursors to the assembly line dating back to the venetian armory (galileo worked there for a short period!) but these are tangential nitpicks. The lectures are amazing.
@gatlatwal8499
@gatlatwal8499 Жыл бұрын
Please help me calculate this problem Suppose the production is given as Q= F(56L^1/2 -12L+K^2+400)where the value of K=5unit then calculate elasticity of input at total output maximizing level of input
@androidperez3746
@androidperez3746 3 жыл бұрын
Thank you for uploading this for free.
@subhuman3408
@subhuman3408 8 ай бұрын
39:00
@aleksandrajadczyk9981
@aleksandrajadczyk9981 2 ай бұрын
So the professor said that the people are not getting richer, only the top 1%. So the productivity in the US doesn't match the earnings of the 'normal' guys. This is sad to hear...I would like to learn more about that, actually.
@OG-NASA
@OG-NASA 3 жыл бұрын
Amazing lecture bro
@nox5282
@nox5282 2 жыл бұрын
Food consumption has risen sure, but I’m willing to bet the nutritional consumption is way down. Cost of food, mineral drainage from soil and increase demand for fast and empty calories.
@michaelcollins1717
@michaelcollins1717 2 жыл бұрын
39:50 you're welcome
@Himanshu12468
@Himanshu12468 2 жыл бұрын
Could someone please dwell more into “firm and market concept” in reference to this lecture
@zamuelito8266
@zamuelito8266 2 жыл бұрын
39:51 how much….SHIT???? What the…..?!
@andreasantoniou6017
@andreasantoniou6017 2 жыл бұрын
lol what is your problem
@kiharawatiri3849
@kiharawatiri3849 3 жыл бұрын
what is the secret behind understanding and passing microeconomics ?
@sleepycritical6950
@sleepycritical6950 3 жыл бұрын
Studying. I'm in the same boat man, really studying by immersing myself in econs.
@alex-pu6uq
@alex-pu6uq 3 жыл бұрын
this and khan academy
@AigerimSultanova-q3m
@AigerimSultanova-q3m Жыл бұрын
thank you so much!!!!
@muhammadsiddiqui2244
@muhammadsiddiqui2244 4 жыл бұрын
2:50 Prof: We will try to keep it straight. LGBTQ+ Community: Let's protest.......
@defyingfinance9882
@defyingfinance9882 Жыл бұрын
at 47:00 thats easy. Inflation destroyed the wealth.
@saptarshi_g
@saptarshi_g 4 ай бұрын
Why is f(2L, 2K) = 2f(l, K) and not 4f(l, K)?
@R4c3r01
@R4c3r01 3 ай бұрын
I'm guessing due to the distributive property of mathematics! My question was: Is AI kapital or labor?
@kingrobert7246
@kingrobert7246 2 жыл бұрын
Does anyone know where the square root is derived from in all the production functions e.g. why is is sqrt of p x s not just p x s?
@chappie3642
@chappie3642 2 жыл бұрын
It's probably to adhere to the law of diminishing marginal product of labor, If It were labor*Capital then the derivative of the quantity produced with respect to the labor would Just be the Capital, meaning that a given an increase of 1 in the labor provided the quantity of things produced increases by k regardless of how much labor Is already put in. On the other hand you can check for yourself that if the function Is F(L,K) = √(L*K) then the marginal product of labor Is √K/(2*√L) so as the labor increases so does the change in quantity produced when L increases (because of the √L in the denominator)
@Paulgizmo
@Paulgizmo 2 жыл бұрын
Super great video
@mdrabbani1167
@mdrabbani1167 2 жыл бұрын
Watching from Bangladesh.
@marcwhite6267
@marcwhite6267 Жыл бұрын
"There's never been a famine in a democracy."
@rohinishrampersad676
@rohinishrampersad676 3 ай бұрын
Guys which book are they using please ?????
@mitocw
@mitocw 3 ай бұрын
From the syllabus, "There is no formal textbook for the course. If students are interested in further reading, they can look at the following book: Perloff, Jeffrey M. Microeconomics, 7th Edition. Addison-Wesley, 2012. ISBN: 9780133456912." For more info and materials visit MIT OpenCourseWare at: ocw.mit.edu/14-01F18 Best wishes on your studies!
@SphereofTime
@SphereofTime Жыл бұрын
15:35
@aliyahhh2300
@aliyahhh2300 2 жыл бұрын
thank you very muchhh huhuhu
@aliyahhh2300
@aliyahhh2300 2 жыл бұрын
13:01
@shizukakudo-nj1re
@shizukakudo-nj1re 8 ай бұрын
Is this that Japanese chalk ?
@rashidahjalaludin9909
@rashidahjalaludin9909 3 жыл бұрын
interesting; related to reality (not just theory)
@nomad8473
@nomad8473 2 жыл бұрын
Cant believe a pro cant tell big Q from little q
@stormrider1375
@stormrider1375 Жыл бұрын
"The moment that [National Socialist] Germany revolted against the conception that production should be restricted in the interests of a few High Financiers, she created in the minds of all well-informed democrats the fear that Central Europe would break away together from the system of international finance." - William Joyce, "Twilight Over England", 1940
@ivanferraz8914
@ivanferraz8914 2 жыл бұрын
He knows how to teach :)
@hinoiri5886
@hinoiri5886 Жыл бұрын
my teacher could never
@gabbyaordkian1924
@gabbyaordkian1924 3 жыл бұрын
Very thorough prof
@nomad8473
@nomad8473 2 жыл бұрын
This guy sounds like a.communist.describing capital.theory. and i love it
@andreasantoniou6017
@andreasantoniou6017 2 жыл бұрын
well no it is all just technicalities
@misteredventure
@misteredventure Жыл бұрын
I'm confused though. Why is this guy still using chalk and a chalkboard? This is MIT, right?
@Faisal_Fahad
@Faisal_Fahad 4 жыл бұрын
15:12 , :)
@alimorevale7351
@alimorevale7351 2 жыл бұрын
Philippines here 😅
@MajinXarris
@MajinXarris 2 жыл бұрын
3:57 " Labour is pretty easy "Typical capitalist mentality shining in a high level institution. 4:09 "Capital is harder" Sure it is harder but guess what, machines are also built by "workers", buildings are also built by "workers" land is also secured by "workers", therefore this contradicts his statement that capital is difficult. I can't believe people aren't commenting on that.
@ArunKumar-yb2jn
@ArunKumar-yb2jn 2 жыл бұрын
Easy there buddy. He just means in the short run it's easier to hire more workers than acquire capital. It's a technical problem. Not a value judgement. Go easy on the concepts.
@andreasantoniou6017
@andreasantoniou6017 2 жыл бұрын
calm down my gen Z friend
@user-wc7em8kf9d
@user-wc7em8kf9d 4 жыл бұрын
I guess that economics should be among the easiest courses at MIT...
@HarukiYamamoto
@HarukiYamamoto 3 жыл бұрын
Anything is easy if you have a background in engineering.
@raniahassan353
@raniahassan353 3 жыл бұрын
@@HarukiYamamoto why
@hkl103
@hkl103 2 ай бұрын
Europe is more run down?? 😂
@Google.Account-e2w
@Google.Account-e2w Ай бұрын
Entropy
@jatinthukral2443
@jatinthukral2443 13 күн бұрын
So ba-ee-sically..
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